Medical Professional Mortgage Loan Programs-Are They for You?

Did you know there are special mortgage loan programs designed specifically for doctors? Physician loans are home loan options that can assist doctors in purchasing a home before they may otherwise be able to.

These loans are ideally meant for new medical professionals just entering the field, such as Residents and Fellows. Doctors are often at a disadvantage when applying for a "regular" mortgage early in their career due to their large debt-to-income ratio (DTI) after medical school.

Despite lacking significant income early on due to medical school debt, doctors have the potential to earn more money in the future and are less likely to default on their loans. With this in mind, lenders are more willing to make compromises when it comes to lending, such as little to no down payment, waived private mortgage insurance (PMI), and higher DTI ratios.

Basic Qualifications:

Although the requirements vary slightly between mortgage lenders, certain prerequisites are consistent across most providers of physician loans-

• Proof of a medical degree

• A signed contract proving you have a job as a doctor that will start in 60-90 days

• FICO score of 700+

• Deferred student loans

• A debt-to-income ratio of 45% or less (excluding student loans)

• Be within the first 10 years of your career

Let's Compare Loan Types

Physician's Mortgage

• Typically doesn't require private mortgage insurance (PMI)

• Allows for higher debt to income ratios

• Requires only an employment contract (start date can be in the future)

• Flexible down payment options, some including 0% down

• Interest rates rely less on credit score

Conventional Mortgage

• Private mortgage insurance (PMI) required if less than 20% is put down

• Debt-to-income ratio should be less than 36%

• Requires proof of income

• Down payment required

• Interest rates dependent on credit score

Who is Eligible?

• DM, DO, OD, DMD, DDS, DPM

• Medical Resident

• Medical Fellow

• Doctor of Pharmacy

Some programs also include:

• Physician Assistant

• Nurse Practitioner

• Registered Nurse

• Nurse Anesthetist

• Clinical Nurse Specialist

• Veterinarian

A Sampling of Physician Mortgage Loan Providers:

• Fairway Independent Mortgage Corporation

• Flagstar Bank

• PhysicianLoans USA

• Evolve Bank

• BMO Harris

• U.S. Bank

• Fifth Third Bank

• Trust

• Bank of America

If you are looking for innovative mortgage solutions, designed around your unique financial situation, a physician's loan may be for you. Have questions or want more information? Reach out today. We are happy to assist you!